There were 459 press releases posted in the last 24 hours and 163,383 in the last 365 days.

Stericycle, Inc. Reports Results for the Fourth Quarter and Full Year Ended 2016

/EIN News/ -- LAKE FOREST, Ill., Feb. 15, 2017 (GLOBE NEWSWIRE) -- Stericycle, Inc. (NASDAQ:SRCL), today reported financial results for the fourth quarter and the full year of 2016.

FOURTH QUARTER HIGHLIGHTS COMPARED TO PRIOR YEAR:

  • Revenues of $ 906.4 million, up 2.0%, including a 2.9% negative impact from foreign exchange
  • GAAP gross profit of $373.7 million, down 1.8%
  • GAAP earnings per diluted share (“GAAP EPS”) decreased 82.4% to $0.14 and Non-GAAP earnings per diluted share (“Non-GAAP EPS”) decreased 20.6% to $1.00

FOURTH QUARTER RESULTS

Revenues for the quarter ended December 31, 2016 were $906.4 million, up $18.1 million or 2.0% from $888.3 million in the fourth quarter of last year. Acquisitions contributed approximately $5.0 million to the current period’s growth in revenues. Divestitures negatively impacted current period revenues by $0.2 million. Revenues increased 4.9% compared to the fourth quarter of last year when adjusted for unfavorable foreign exchange impacts of $25.8 million. Organic revenues grew 4.4%, or 5.2% when adjusted for manufacturing and industrial services. See Tables 1A-1C.

“We were very pleased with our fourth quarter operational performance. Additionally, our recall team delivered a record-breaking quarter which enhanced our results,” said Charlie Alutto, President and Chief Executive Officer.

Gross profit, reported in accordance with U.S. generally accepted accounting principles (“GAAP”), was $373.7 million, down 1.8% from $380.4 million in the fourth quarter of last year. GAAP gross profit as a percentage of revenue was 41.2% compared to 42.8% in the fourth quarter of last year. Non-GAAP gross profit, when adjusted for contract exit costs as identified in Table 2, was $380.2 million, a decrease of 0.2% from $380.9 million in the fourth quarter of last year. Non-GAAP gross profit as a percentage of revenues was 42.0% compared to 42.9% in the fourth quarter of last year.

“Shred-it synergies remain on track. We completed the integration of the inside sales and customer service teams and established standardized best practices for our operational teams. Additionally our cross selling efforts produced several sizable wins among our national and hospital accounts,” said Brent Arnold, Chief Operating Officer.

GAAP earnings per diluted share decreased 82.4% to $0.14 from $0.82 in the fourth quarter of last year. Non-GAAP earnings per diluted share, when adjusted for various items, decreased 20.6% to $1.00 from $1.26 in the fourth quarter of last year. See Tables 3 and 4.

FULL YEAR HIGHLIGHTS COMPARED TO PRIOR YEAR

  • Revenues of $3.56 billion, up 19.3%, including a 2.9% negative impact from foreign exchange
  • GAAP gross profit of $1.50 billion, up 18.7%
  • GAAP EPS decreased 30.2% to $2.08 and Non-GAAP EPS decreased 4.6% to $4.52

FULL YEAR RESULTS

Revenues for the full year 2016 were $3.56 billion, up $576.4 million or 19.3% from $2.99 billion in the same period last year. Acquisitions contributed approximately $570.1 million to the current year’s growth in revenues. Divestitures negatively impacted current year revenues by $0.2 million. Revenues increased 22.2% compared to the same period last year when adjusted for unfavorable foreign exchange impact of $88.0 million. Organic revenues grew 3.2%, or 4.5% when adjusted for manufacturing and industrial services. See Tables 1A-1C.

GAAP gross profit was $1.50 billion, up $237.0 million or 18.7% from $1.27 billion in the same period last year. GAAP gross profit as a percentage of revenues was 42.2% compared to 42.4% in the same period last year. Non-GAAP gross profit, when adjusted for contract exit costs and plant conversion expenses as identified in Table 2, was $1.51 billion, up $244.6 million or 19.3% from $1.27 billion in the same period as last year. Non-GAAP gross profit as a percentage of revenues was flat at 42.5% in the fourth quarter of 2016 and 2015.

GAAP earnings per diluted share decreased 30.2% to $2.08 from $2.98 in 2015. Non-GAAP earnings per diluted share, when adjusted for various items, decreased 4.6% to $4.52 from $4.74 in the same period last year. See Tables 3 and 4.

Cash flow from operations for the year ended 2016 was $547.4 million, up 40.2% from $390.3 million in the same period last year.

CONFERENCE CALL INFORMATION

Conference call to be held February 15, 2017 4:00 p.m. Central time – Dial 866-516-6872 at least 5 minutes before start time. If you are unable to participate on the call, a replay will be available for 30 days by dialing 855-859-2056, access code 49243907. To hear a live simulcast of the call or access the audio archive, visit the investor relations page on www.stericycle.com.

PRESENTATION OF NON-GAAP INFORMATION

This press release includes certain non-GAAP financial measures, as defined in the SEC’s Regulation G. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures allows for a better period over period comparison by removing the impact of items that, in management’s view, do not reflect the Company’s underlying operating performance. These measures are also used to evaluate senior management and are a factor in determining their at-risk compensation.

Adjusted diluted earnings per share, adjusted net income attributable to Stericycle common shareholders, adjusted gross profit, and adjusted revenue growth are described in the Reconciliation of Certain Non-GAAP Measures section of this document.

These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial results, but should be read in conjunction with the unaudited condensed consolidated statement of income and other information presented herein. The non-GAAP financial measures in the press release may differ from similar measures used by other companies. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure is included in the accompanying tables.

DISCUSSION OF ADJUSTING ITEMS FOR NON-GAAP MEASURES

For the purpose of evaluating revenues, we present non-GAAP revenues to show the impact of foreign currency, revenues from acquisitions and Manufacturing and Industrial Services (“M&I”). Management reviews and analyzes revenues excluding the effect of foreign currency translation and revenue from acquisitions because we believe this better represents the Company’s underlying business trends, including organic revenue growth. Separate presentation of M&I allows for visibility of a revenue stream that has shown greater volatility than our other service lines.

For the purpose of evaluating operating performance, we present our financials to show the impact of income and expenses in our non-GAAP earnings related to acquisitions. These adjustments include acquisition expense, integration expense, amortization expense, and the change in fair value of contingent consideration. This allows for comparison of period over period results without the impact of acquisition-related expenses.

For the purpose of evaluating operating performance, we additionally present our financials to show the impact of certain expenses and income in our non-GAAP earnings to allow for period over period comparison of financials without the impact of charges that may not occur each year and if so, are due to different factors. For the periods presented, these adjustments include litigation expense, restructuring and plant conversion expenses, contract exit costs, asset impairment charges, and insurance proceeds.

For the purpose of calculating the ultimate impact of our mandatory convertible preferred stock, we show the impact to our EPS by excluding the mandatory convertible preferred stock dividend and using the “if-converted” method of share dilution. This provides the reader insight to how our diluted shares will be affected after these preferred shares are converted to common shares.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

Table 1 – A: RECONCILIATION OF GAAP TO NON-GAAP REVENUE GROWTH – QTD Q4

    Three Months Ended December 31, 2016 and 2015  
    In millions     Percentage Growth (%)  
Global Revenue Details by Service   2016         2015     Growth     Organic   Acquisitions
and
Divestitures
  Foreign
Exchange
 
Regulated Waste and Compliance Services   $ 512.7         $ 520.3     $ (7.5 )     1.0 %   0.4 %   (2.8 %)
Secure Information Destruction Services     185.2           178.1       7.1       4.8 %   1.7 %   (2.4 %)
Communication and Related Services     112.4           86.6       25.9       31.4 %   0.4 %   (1.9 %)
Manufacturing and Industrial Services     96.0           103.4       (7.4 )     (1.5 %)   (0.5 %)   (5.1 %)
Total Revenues, as Reported     906.4           888.3       18.1       4.4 %   0.5 %   (2.9 %)
Less: Manufacturing and Industrial Services     (96.0 )         (103.4 )                            
Total Revenues, as Adjusted (Non-GAAP)   $ 810.4         $ 784.9     $ 25.5       5.2 %   0.7 %   (2.6 %)
                                                 
Domestic and Canada Revenues   $ 725.3         $ 687.5     $ 37.9       4.4 %   1.1 %   0.0 %
International Revenues     181.1           200.8       (19.8 )     4.5 %   (1.5 %)   (12.8 %)
Total Revenues, as Reported   $ 906.4         $ 888.3     $ 18.1       4.4 %   0.5 %   (2.9 %)
                                                 

Table 1 – B: RECONCILIATION OF GAAP TO NON-GAAP REVENUE GROWTH – YTD

        Years Ended December 31, 2016 and 2015  
        In millions     Percentage Growth (%)  
Global Revenue Details by Service       2016         2015     Growth     Organic   Acquisitions
and
Divestitures
  Foreign
Exchange
  Total  
Regulated Waste and Compliance Services       $ 2,063.0         $ 2,064.9     $ (1.9 )     2.1 %   0.5 %   (2.7 %)   (0.1 %)
Secure Information Destruction Services         747.5           178.1       569.4     N/A   N/A   N/A   N/A  
Communication and Related Services         370.4           334.1       36.3       10.5 %   1.8 %   (1.5 %)   10.9 %
Manufacturing and Industrial Services         381.5           408.8       (27.4 )     (4.8 %)   2.4 %   (4.3 %)   (6.7 %)
Total Revenues, as Reported         3,562.3           2,985.9       576.4       3.2 %   19.1 %   (2.9 %)   19.3 %
Less: Manufacturing and Industrial Services         (381.5 )         (408.8 )                                  
Total Revenues, as Adjusted (Non-GAAP)       $ 3,180.9         $ 2,577.1     $ 603.8       4.5 %   21.7 %   (2.8 %)   23.4 %
                                                           
Domestic and Canada Revenues       $ 2,810.7         $ 2,269.1     $ 541.5       2.7 %   21.3 %   (0.1 %)   23.9 %
International Revenues         751.7           716.8       34.9       4.6 %   12.2 %   (12.0 %)   4.9 %
Total Revenues, as Reported       $ 3,562.3         $ 2,985.9     $ 576.4       3.2 %   19.1 %   (2.9 %)   19.3 %
                                                           

Table 1 – C: DISAGGREGATED REVENUE GROWTH – 2016

In millions  
  Three Months Ended
December 31, 2016
        Year Ended December 31, 2016  
Organic $ 39.1         $ 94.6  
Acquisitions   5.0           570.1  
Divestitures   (0.2 )         (0.2 )
Foreign Exchange   (25.8 )         (88.0 )
Total Growth $ 18.1         $ 576.4  
                   

Table 2: RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT

In millions                                                      
  Three Months Ended December 31,     Years Ended December 31,  
  2016     2015     2016     2015  
  $   % of Rev     $   % of Rev     $   % of Rev     $   % of Rev  
Gross Profit, as Reported $ 373.7     41.2 %   $ 380.4     42.8 %   $ 1,503.2     42.2 %   $ 1,266.2     42.4 %
Contract exit costs   6.5     0.7 %     -     0.0 %     8.3     0.2 %     -     0.0 %
Plant Conversion Expenses   -     0.0 %     0.5     0.1 %     0.8     0.0 %     1.5     0.1 %
Gross Profit, as Adjusted (Non-GAAP) $ 380.2     42.0 %   $ 380.9     42.9 %   $ 1,512.3     42.5 %   $ 1,267.7     42.5 %
                                                       

Table 3: RECONCILIATION OF GAAP TO NON-GAAP NET INCOME ATTRIBUTABLE TO STERICYCLE COMMON SHAREHOLDERS

In millions, except share and per share data  
  Three Months Ended December 31,     Years Ended December 31,  
  2016   2015     2016   2015  
Net Income Attributable to Stericycle, Inc. Common Shareholders, As Reported $ 12.3     70.7     $ 177.8     256.9  
Adjustments:                          
Amortization Expense a   27.0     18.5       129.3     45.5  
Acquisition Expenses   1.8     (0.8 )     9.6     39.1  
Integration Expenses   26.6     20.4       87.6     51.7  
Litigation and Professional Service Expenses   7.5     0.6       12.9     59.7  
Changes in Fair Value of Contingent Consideration   0.0     -       (2.1 )   (0.6 )
Restructuring and Plant Conversion Expenses   2.3     4.6       4.0     22.7  
Contract Exit Costs   1.2     -       24.0     -  
Asset impairment charges b   31.0     1.8       31.0     1.8  
Insurance Proceeds   -     -       (3.1 )   -  
Add Back Convertible Preferred Stock Dividend   9.6     10.1       39.4     10.1  
Total Adjustments   106.9     55.3       332.7     230.0  
Tax Effect of above adjustments c   (29.0 )   (10.4 )     (98.2 )   (70.8 )
Net Income Attributable to Stericycle, Inc. Common Shareholders, as Adjusted (Non-GAAP) $ 90.3   $ 115.6     $ 412.3   $ 416.1  
EPS, as Reported $ 0.14   $ 0.82     $ 2.08   $ 2.98  
EPS, as Adjusted (Non-GAAP) $ 1.00   $ 1.26     $ 4.52   $ 4.74  
Weighted average number of common shares outstanding - diluted   85,433,490     85,949,461       85,610,219     86,162,609  
Additional Dilution Under If-Converted Method   5,348,094     5,481,207       5,528,257     1,648,318  
Diluted Weighted Average Number of Common Shares Outstanding Under If-Converted Method   90,781,584     91,430,668       91,138,476     87,810,927  


a) Beginning in the quarter ended March 31, 2016, the Company has started to exclude amortization expense from non-GAAP EPS. For comparable reporting, the Company’s previously reported 2015 results are adjusted to reflect the change.
b) Asset impairment charges included $28.5 million in “Selling, general and administrative expenses exclusive of depreciation” and $2.5 million with “Other (expense)/ income, net” on our Consolidated Statement of Income.
c) The tax effect of the adjustments is calculated based on applying the appropriate tax rate for the jurisdictions in which the adjustment occurred for the respective periods.
   

Table 4: RECONCILIATION OF GAAP TO NON-GAAP EPS

  Three Months Ended December 31,     Years Ended December 31,  
                  Change                   Change  
  2016     2015     $   %     2016     2015   $   %  
EPS, as Reported $ 0.14     $ 0.82     $ (0.68 )   -82.4 %   $ 2.08     $ 2.98   $ (0.90 )   -30.2 %
Amortization Expense   0.20       0.14                     0.98       0.35              
Acquisition Expenses   0.01       0.00                     0.07       0.34              
Integration Expenses   0.21       0.15                     0.65       0.39              
Litigation and Professional Service Expenses   0.05       0.05                     0.09       0.46              
Changes in Fair Value of Contingent Consideration   0.00       0.00                     (0.02 )     (0.01 )            
Restructuring and Plant Conversion Expenses   0.02       0.04                     0.04       0.18              
Contract Exit Costs   0.01       0.00                     0.21       0.00              
Asset Impairment Charges   0.31       0.02                     0.31       0.02              
Insurance Proceeds   0.00       0.00                     (0.04 )     0.00              
Add Back Convertible Preferred Stock Dividend   0.11       0.12                     0.46       0.12              
Total Impact of All Adjustments Including Convertible Preferred Stock Dividend   (0.06 )     (0.08 )                   (0.31 )     (0.09 )            
EPS, as Adjusted (Non-GAAP) $ 1.00     $ 1.26     $ (0.26 )   -20.6 %   $ 4.52     $ 4.74   $ (0.22 )   -4.6 %
Diluted Weighted Average Number of Common Shares Outstanding Under If-Converted Method   90,781,584       91,430,668                     91,138,476       87,810,927              
                                                         

For more information about Stericycle, please visit our website at www.stericycle.com.

Safe Harbor Statement: This press release may contain forward-looking statements that involve risks and uncertainties, some of which are beyond our control (for example, general economic and market conditions). Our actual results could differ significantly from the results described in the forward-looking statements. Factors that could cause such differences include changes in governmental regulation of the collection, transportation, treatment and disposal of regulated waste or the proper handling and protection of personal and confidential information, increases in transportation and other operating costs, the level of governmental enforcement of regulations governing regulated waste collection and treatment or the proper handling and protection of personal and confidential information, our obligations to service our substantial indebtedness and to comply with the covenants and restrictions contained in our private placement notes, term loan credit facility and revolving credit facility, our ability to execute our acquisition strategy and to integrate acquired businesses, competition and demand for services in the regulated waste and secure information destruction industries, political, economic and currency risks related to our foreign operations, impairments of goodwill or other indefinite-lived intangibles, variability in the demand for services we provide on a project or non-recurring basis, exposure to environmental liabilities, fluctuations in the price we receive for the sale of paper, disruptions in or attacks on our information technology systems, compliance with existing and future legal and regulatory requirements, as well as other factors described in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K. As a result, past financial performance should not be considered a reliable indicator of future performance, and investors should not use historical trends to anticipate future results or trends. We make no commitment to disclose any subsequent revisions to forward-looking statements.

   
STERICYCLE, INC. AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
               
In thousands  
  December 31,  
  2016     2015  
  (Unaudited)          
ASSETS              
Current Assets:              
Cash and cash equivalents $ 44,189     $ 55,634  
Short-term investments   62       69  
Accounts receivable, net   633,650       614,494  
Prepaid expenses   47,864       46,740  
Assets held for sale   8,147       -  
Other current assets   38,207       44,891  
Total Current Assets   772,119       761,828  
Property, plant and equipment, net   724,086       665,602  
Goodwill   3,596,882       3,758,177  
Intangible assets, net   1,861,973       1,842,561  
Other assets   29,555       36,995  
Total Assets $ 6,984,615     $ 7,065,163  
               
LIABILITIES AND EQUITY              
Current Liabilities:              
Current portion of long-term debt $ 72,974     $ 161,409  
Accounts payable   148,055       149,202  
Accrued liabilities   234,504       197,329  
Deferred revenues   17,902       16,989  
Liabilities held for sale   1,871       -  
Other current liabilities   65,990       62,420  
Total Current Liabilities   541,296       587,349  
               
Long-term debt, net of current portion   2,878,149       3,040,352  
Deferred income taxes   651,177       608,272  
Other liabilities   98,137       81,352  
Equity:              
Mandatory convertible preferred stock   7       8  
Common stock   852       849  
Additional paid-in capital   1,166,457       1,143,020  
Accumulated other comprehensive loss   (367,783 )     (282,631 )
Retained earnings   2,005,674       1,868,645  
Total Stericycle, Inc. Equity   2,805,207       2,729,891  
Noncontrolling interests   10,649       17,947  
Total Equity   2,815,856       2,747,838  
Total Liabilities and Equity $ 6,984,615     $ 7,065,163  
               


STERICYCLE, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF INCOME  
                                                       
In thousands, except share and per share data  
  Three Months Ended December 31,     Years Ended December 31,  
  2016     2015     2016     2015  
  $   % of
Rev
    $   % of
Rev
    $   % of
Rev
    $   % of
Rev
 
  (Unaudited)     (Unaudited)                
                                                       
Revenues $ 906,396     100.0 %   $ 888,304     100.0 %   $ 3,562,342     100.0 %   $ 2,985,908     100.0 %
Cost of revenues ("COR") exclusive of depreciation   513,159     56.6 %     489,030     55.1 %     1,970,584     55.3 %     1,658,081     55.5 %
Depreciation   19,564     2.2 %     18,919     2.1 %     88,546     2.5 %     61,642     2.1 %
Total cost of revenues   532,723     58.8 %     507,949     57.2 %     2,059,130     57.8 %     1,719,723     57.6 %
                                                       
Gross profit, as reported   373,673     41.2 %     380,355     42.8 %     1,503,212     42.2 %     1,266,185     42.4 %
Gross profit, as adjusted (non-GAAP)   380,239     42.0 %     380,862     42.9 %     1,512,253     42.5 %     1,267,693     42.5 %
                                                       
Selling, general and administrative expenses ("SG&A") exclusive of depreciation   290,103     32.0 %     222,297     25.0 %     1,029,397     28.9 %     758,301     25.4 %
Depreciation   9,655     1.1 %     7,519     0.8 %     34,752     1.0 %     20,272     0.7 %
Total SG&A expense, as reported   299,758     33.1 %     229,816     25.9 %     1,064,149     29.9 %     778,573     26.1 %
Total SG&A expense, as adjusted (non-GAAP)   211,495     23.3 %     185,075     20.8 %     779,341     21.9 %     560,216     18.8 %
                                                       
Income from operations, as reported   73,915     8.2 %     150,539     16.9 %     439,063     12.3 %     487,612     16.3 %
Income from operations, as adjusted (non-GAAP) exclusive of adjusting items shown below   168,744     18.6 %     195,787     22.0 %     732,912     20.6 %     707,477     23.7 %
                                                       
Adjusting items:                                                      
Plant conversion expenses (COR)   -     0.0 %     507     0.1 %     760     0.0 %     1,508     0.1 %
Contract exit costs (COR)   6,566     0.7 %     -     0.0 %     8,281     0.2 %     -     0.0 %
Amortization (SG&A)   26,989     3.0 %     18,541     2.1 %     129,300     3.6 %     45,498     1.5 %
Acquisition expenses (SG&A)   1,784     0.2 %     (818 )   -0.1 %     9,646     0.3 %     39,138     1.3 %
Integration expenses (SG&A)   26,579     2.9 %     20,432     2.3 %     87,587     2.5 %     51,689     1.7 %
Litigation and professional services expenses (SG&A)   7,459     0.8 %     645     0.1 %     12,904     0.4 %     59,651     2.0 %
Change in fair value of contingent consideration (SG&A)   34     0.0 %     -     0.0 %     (2,051 )   -0.1 %     (640 )   0.0 %
Restructuring and plant conversion expenses (SG&A)   2,329     0.3 %     4,160     0.5 %     3,226     0.1 %     21,240     0.7 %
Contract exit costs (SG&A)   (5,379 )   -0.6 %     -     0.0 %     15,724     0.4 %     -     0.0 %
Asset impairment charges (SG&A)   28,468     3.1 %     1,781     0.2 %     28,472     0.8 %     1,781     0.1 %
Total adjustments   94,829     10.5 %     45,248     5.1 %     293,849     8.2 %     219,865     7.4 %
                                                       
Other income (expense):                                                      
Interest expense, net   (24,620 )   -2.7 %     (24,908 )   -2.8 %     (97,709 )   -2.7 %     (77,274 )   -2.6 %
Other (expense)/ income, net   (7,149 )   -0.8 %     4,525     0.5 %     (7,586 )   -0.2 %     569     0.0 %
Total other expense   (31,769 )   -3.5 %     (20,383 )   -2.3 %     (105,295 )   -3.0 %     (76,705 )   -2.6 %
                                                       
Income before income taxes   42,146     4.6 %     130,156     14.7 %     333,768     9.4 %     410,907     13.8 %
                                                       
Income tax expense   23,635     2.6 %     49,618     5.6 %     126,259     3.5 %     142,894     4.8 %
                                                       
Net income   18,511     2.0 %     80,538     9.1 %     207,509     5.8 %     268,013     9.0 %
                                                       
Less: net income attributable to noncontrolling interests   157     0.0 %     (289 )   0.0 %     1,540     0.0 %     967     0.0 %
                                                       
Net income attributable to Stericycle, Inc.   18,354     2.0 %     80,827     9.1 %     205,969     5.8 %     267,046     8.9 %
                                                       
Less: mandatory convertible preferred stock dividend   9,561     1.1 %     10,106     1.1 %     39,414     1.1 %     10,106     0.3 %
Less: gain on repurchase of preferred stock   (3,538 )   -0.4 %     -     0.0 %     (11,285 )   -0.3 %     -     0.0 %
                                                       
Net income attributable to Stericycle, Inc. common shareholders $ 12,331     1.4 %   $ 70,721     8.0 %   $ 177,840     5.0 %   $ 256,940     8.6 %
                                                       
Earnings per share - diluted $ 0.14           $ 0.82           $ 2.08           $ 2.98        
                                                       
Weighted average number of common shares outstanding - diluted   85,433,490             85,949,461             85,610,219             86,162,609        
                                                       


STERICYCLE, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
               
In thousands  
  Years Ended December 31,  
  2016     2015  
  (Unaudited)          
Operating Activities:              
Net income $ 207,509     $ 268,013  
Adjustments to reconcile net income to net cash provided by operating activities:              
Stock compensation expense   20,455       21,750  
Excess tax benefit of stock options exercised   -       (16,897 )
Depreciation   123,298       81,914  
Amortization   129,300       45,498  
Deferred income taxes   7,020       (10,294 )
Asset impairment charges   28,472       8,107  
Other, net   975       (640 )
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:              
Accounts receivable   (41,884 )     (55,890 )
Accounts payable   6,041       26,366  
Accrued liabilities   34,502       26,060  
Deferred revenue   1,382       (4,615 )
Other assets and liabilities   30,311       956  
Net cash provided by operating activities   547,381       390,328  
               
Investing Activities:              
Payments for acquisitions, net of cash acquired   (63,917 )     (2,419,437 )
Proceeds from investments   7       294  
Proceeds from insurance settlement   2,358       -  
Proceeds from sale of business   790       -  
Proceeds from sale of property and equipment   1,316       -  
Capital expenditures   (136,160 )     (114,761 )
Net cash used in investing activities   (195,606 )     (2,533,904 )
               
Financing Activities:              
Repayments of long-term debt and other obligations   (89,215 )     (93,172 )
Proceeds from foreign bank debt   76,237       53,747  
Repayments of foreign bank debt   (84,114 )     (87,308 )
Proceeds from term loan   -       1,550,000  
Repayments of term loan   (250,000 )     (300,000 )
Proceeds from private placement of long-term note   -       600,000  
Repayments of private placement of long-term note   -       (100,000 )
Proceeds from senior credit facility   1,464,902       1,907,402  
Repayments of senior credit facility   (1,393,323 )     (2,004,385 )
Repayments of capital lease obligations   (5,313 )     (3,865 )
Payments of deferred financing costs   (605 )     (9,903 )
Payment for hedge   -       (8,833 )
Payments for repurchase of common stock   (40,814 )     (130,576 )
Payments for repurchase of mandatory convertible preferred stock   (30,910 )     -  
Proceeds from issuances of mandatory convertible preferred stock   -       746,900  
Proceeds from issuances of common stock   37,504       60,124  
Dividends paid on mandatory convertible preferred stock   (39,414 )     (10,106 )
Excess tax benefit of stock options exercised   -       16,897  
Payments to noncontrolling interests   (8,190 )     (5,714 )
Net cash (used in)/ provided by financing activities   (363,255 )     2,181,208  
Effect of exchange rate changes on cash and cash equivalents   35       (4,234 )
Net (decrease)/ increase in cash and cash equivalents   (11,445 )     33,398  
Cash and cash equivalents at beginning of period   55,634       22,236  
               
Cash and cash equivalents at end of period $ 44,189     $ 55,634  
               
Non-cash activities:              
Net issuances of obligations for acquisitions $ 44,230     $ 80,189  
               


FOR FURTHER INFORMATION CONTACT:

Investor Relations 847-607-2012

Primary Logo